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Draft Presentation

Ken Robbins, President of the National Center for American Indian Enterprise Development

ITTI 2001 Industry Conference

June 5, 2001

Thank you Wallace (Coffey) and Good Morning. I am Ken Robbins, a member of the Standing Rock Sioux Tribe and President of the National Center for American Indian Enterprise Development (National Center).

I am excited about this ITTI 2001 Industry Conference and am honored to participate. This is a first and a leading conference in the new and developing American Indian economy.

Today, I am going to give you a quick overview of the National Center and will also identify some technology-oriented business opportunities and funding in utilities infrastructure, environment, and education.

I have a short video that gives a good overview of the National Center…

The video is a little outdated, we recently opened an office in Marietta, Georgia by way of our separate subsidiary, UIDA Consulting Group.

The National Center delivers comprehensive business development services for tribes and Indian businesses nationally but focus on 29 states.

Our vision is to see healthy flourishing Indian Country economies in areas that Indian People want to see developed. We believe it is our time to move from poverty to prosperity.

And it is apparent that a very high priority for the development of healthy reservation and Alaskan Village economies rests with our ability and desire to tap into technological opportunities.

In order for us to use technology to its fullest, a strong infrastructure needs to be in place in each Indian community. Tribal representatives will need to take the lead in implementing long-term plans that create infrastructure and IT opportunities. For gaming tribes, this is one excellent way to diversify gaming dollars into business development for tribal communities.

During the National Center’s 2001 Reservation Economic Summit, Gerald Vaughan, of the Federal Communications Commission (FCC) proposed one way to bring Internet access to reservations communities is by way of building cellular towers. Mr. Vaughan estimated the cost of a tower at $300,000 and a coverage area of 200 sq. miles. The FCC’s Tribal Land Bidding Credits can be used to defray these costs and, if tribes elect to go this way, tribal utility infrastructure business opportunities might include:

• Constructing, owning and leasing of towers- JD Williams spoke of unique advantages that tribes have available to them. Here is a construction advantage. If the tribe brings the materials into Indian Country and builds a structure there is no State sales tax to pay. This savings could be utilized in a win/win way with a private sector joint venture partner on large projects;

• Providing equipment, supplies, or services for the towers;

• Installing new switches and routers for these towers;

• Engineering for underground lines to towers;

• Laying Fiber Optic/Microwave lines; or

• Leasing the towers after others have constructed them.

Other options include the utilization of satellite technology, wired extensions, spectrum auctions, and the development of alternative energy sources as possible business opportunities.

Tribes could create satellite service companies that work with existing telecommunications satellite corporations. The tribe could bypass, for example, licensing requirements and infrastructure development by working with large corporations that have satellites now in place. Indian Country residents could offset their phone cost with programs such as the Universal Service Support Programs. The tribally owned satellite service company could charge a fee to establish billing, maintenance and customer care and to recuperate its investment in the purchase of necessary equipment such as fixed phones, tri-mode hand held kits, and car kits.

Tribes could also joint venture with existing equipment corporations or service providers to develop wired extensions from adjacent networks. The National Center developed a joint venture teaming model based on a national study of successful joint ventures between tribal enterprises and U.S. corporations. The study is a little outdated, but the tribal policies and the model for developing a teaming relationship are still appropriate. I am happy to share the study with anyone here, interested.

Another future opportunity for tribes could be the tapping into auctioned spectrums over reservation lands for regulation and profitability. Air space may be an untapped resource for many Indian communities.

If Indian Country does not exercise their sovereign rights, states may step in to capture these opportunities. Some tribes are implementing their sovereignty via creating local development authorities, tribal utility commissions, and tribal utility authorities. Pat Spears will talk more on these issues in a few minutes.

Possible special programs or funding sources for the above utility infrastructure development includes:

• FCC Spectrum Auctions and Bidding Credits of 15% to 45% of the net high bid are offered to Small Businesses participating in auctions;

• FCC Tribal Land Bidding Credits to provide greater incentives for wireless carriers to serve tribal lands. Credit amount is $300,000. For the first 200 square miles of qualifying tribal land an applicant commits to serve and $1500 for each additional mile;

• Department of Agriculture’s (DOA) Rural Utility Service, which has $100 million to loan for the construction and installation of broadband telecommunications services in rural America-for communities of up to 20,000 inhabitants; and

• Department of Commerce’s (DOC) Technology Opportunities Program (TOP) was funded at $45.4 million in 2001 budget for competitive grants. The program provides resources to rural and underserved communities for advanced telecommunications technologies. In 2000 TOP funded three tribal projects:

• The Round Valley Indian Health Center for telemedicine;

• The Pueblo of Santa Ana for a wireless community network;

• The Suquamish Indian Tribe for wireless community ed. Services;

• Susan Masten, of NCAI, mentioned $ 1 billion available for loans and grants by way of Senate Bill #3114 which was supported by Senator Baucus and recently passed;

Other Utilities Infrastructure Opportunities may include:

• On and Off Reservation Local and Long Distance Phone Companies;

• Cable TV Companies and Radio Stations; and

• Developing Land Mobile Radio equipment and service companies.

The DoA's Rural Utility Services has $ 5 million available in grants to finance and install new transmitters for weather radio systems in rural America with 50,000 or less inhabitants.

Additionally, there are other readily available markets for Land Mobile Radio equipment. For example, land mobile radio equipment is the largest reoccurring line item in U.S. Air Force (USAF) Logistics Centers. Yesterday, it was mentioned that a tribe won a $225 million USAF contract as part of the USAF Native American Initiatives. This raises business opportunities generated by Federal Programs available to assist Indian Country in procuring contracts.

Some existing programs that create opportunities within Indian Country include:

• Department of Defense’s (DOD) 5% Incentive Program for the Use of Indian Subcontractors-if any of your organizations contract with DOD you can get a 5% bonus on any subcontract you award to an Indian firm;

• Small Business Administration's (SBA) 8(a) - for sole source contracting opportunities with federal agencies;

• HUB zones - also for sole source contracting opportunities with federal agencies, all reservations are HUBzones;

• Indian Preference and Buy Indian - now can be utilized by all agencies, in light of the long established history of these programs and the current direction of Affirmative Action, this may be our best tool for Indian business contracting opportunities; and

• Enterprise Zones (for investor incentives), Federal Empowerment Zones and Enterprise Communities Programs (for primarily water infrastructure development).

As infrastructure is developed in Indian Country many Technology related business opportunities will emerge including:

• Wireless service companies;

• Financing associated with IT;

• Local area or digital network service providers;

• Internet access companies;

• Cellular equipment companies;

• Computer hardware and software firms;

• Global marketing companies to capture the International interest in the American Indian, e.g. Germany;

• Indian Country based temp services firms-As Internet technology impacts our communities we should be able to capture opportunities associated with the declining US baby boomer population. Data processing and many other types of work could be completed on reservation where overhead costs should be lower than metropolitan areas making the service-price competitive.

Business Opportunities in Environment include-Energy generated Wind and Solar Power firms. The DoA’s Utility Services firm has loaned over $4 million to the Navajo Tribal Utility Authority to finance off grid renewable energy systems in rural areas for un-served customers. This funding provides electric service where cost of overhead or underground line extensions is prohibitive.

Business opportunities could lie in working with existing companies that can assist Indian Country in generating alternative sources of energy and in advanced long term battery technology since the wind does not always blow and the sun does not always shine. Other business opportunities include the development of backup power in areas such as diesel or natural gas. With the current energy shortage in the U.S., a tremendous opportunity lies in tribal energy generation via development of businesses from the natural resource stage to that of the end user. Resources include natural gas, coal, oil, and water.

Tribes are linking via telecommunications for sharing of information and best practices regarding fisheries and water rights. The Columbia River Inter-Tribal Fish Commission established a telecommunications network linking the Yakima, Warm Springs, Umatilla, and Nez Perce Tribes. The network enhances the Tribes’ ability to manage fisheries in the Columbia River Basin.

The EPA offers $ 2.5 billion in contract opportunities and $ 4 billion in grants and the National Center has recently signed a MOU with Environmental Protection Agency (EPA) to identify EPA business opportunities for Indian Country.

The DoA's Rural Utility Services has distance learning and telemedicine grant and loan programs. Distance learning is one way tribes with community colleges could help tribes without community colleges.

HUD provides cities, states and tribes with $80 million for developing Community Technical Centers.

Technical Learning Centers. Dr. David Gipp will share his expertise, experience, and success in this field in a few minutes.

E-Rate for Schools and Libraries-A Universal Service Program has up to $2.25 billion available annually to provide discounts of 20% to 90% for basic local and long distance telephone services, Internet access, and acquisition and installation of equipment to provide internal connections.

Development of a long-term strategy for infrastructure development and technology development on Indian Country lands needs to begin with a technical assessment of each Indian community since all tribes/villages are different. This in itself is a great business opportunity for businesses that do this type of consulting.

There is no one complete listing available for defining all business opportunities. It is an emerging and changing market and new economy and change creates opportunity. Our panel of expertise will discuss some of these ideas, along with new and other opportunities further.

It is a great honor to be here and I thank you for your important time.

Internet Resources

|Procurement Opportunities | |

|Federal Grant Resources | |

|Agency Grant Programs | |

|EPA Indian Programs | |

|EPA Office of Acquisition Management  | |

|Dept. of Commerce’s TOP (Technology Opportunity Program)| |

|Fcc universal service |sl.apply/ |

|American Indian reference | |

|American Indian reference | |

|American Indian legal reference | |

|Health opportunity | |

|State reference | |

|Publication site | |

|Publication site | |

|Thomas legislative info site | |

|Council of Energy Resource Tribes | |

|Opportunity/2001 Forecast |Type |Est. $ Amount |Fiscal |Method |Contractor |Contact |

| | | |Year Qtr | | | |

|10.855 Distance Learning and Telemedicine |Education Technology |Varies |NA |NA |Dept of Agriculture |Assistant Administrator, Telecommunications, |

|Loans and Grants: To encourage and improve the| |$200M | | | |Rural Utilities Service, Room 4056, South |

|use of telemedicine, telecommunications, | | | | | |Bldg., U.S. Department of Agriculture, 1400 |

|computer networks, and related advanced | | | | | |Independence Ave., SW., Washington, DC |

|technologies to provide educational and | | | | | |202500-1500. Phone: (202) 720-9554 |

|medical benefits through distance learning and| | | | | | |

|telemedicine projects to people living in | | | | | | |

|rural areas and to improve rural opportunities| | | | | | |

|10.760 Water and Waste Disposal Systems for |Environmental |$3K - $4M |NA |NA |Dept of Agriculture |Assistant Administrator, Water and |

|Rural Communities: To provide basic human |Technology | | | | |Environmental Programs Rural Utilities |

|amenities, alleviate health hazards and | | | | | |Service, Department of Agriculture, |

|promote the orderly growth of the rural areas | | | | | |Washington, DC 20250. Phone: (202) 690-2670 |

|of the nation by meeting the need for new and | | | | | | |

|improved rural water and waste disposal | | | | | | |

|facilities. | | | | | | |

|Development of Education and Outreach |Education |$ 100K-500K |3rd |8(a) |U.S. Dept. of HUD |Annette Hancock, Director, Program Support |

|Campaigns Designed to reach limited English | | | | |Office of Fair Housing & Equal |Division |

|proficiency communities across the country | | | | |Opportunity |202-708-0759 or |

|(OPC #61V2) | | | | | |800-372-9757 |

|Office of Native American Program Grantee |Education |$1M+ |2nd |GSA Schedule |U.S. Dept. of HUD |Annette Hancock, Director, Program Support |

|Training (OPC #76V2) | | | | |Public and Indian Housing |Division |

| | | | | | |202-708-0759 or |

| | | | | | |800-372-9757 |

| | | | | | | |

| | | | | | | |

|Office of Native American Program Staff |Education |$500K - $1M |3rd |GSA Schedule |U.S. Dept. of HUD |Annette Hancock, Director, Program Support |

|Training (OPC #77V2) | | | | |Public and Indian Housing |Division |

| | | | | | |202-708-0759 or |

| | | | | | |800-372-9757 |

|Renewable Energy: To conduct balanced research|Energy technology/ |$10K - $100K |NA | |Dept of Energy |Office of Utility Technologies, Contact: |

|and development efforts in the following |infrastructure | | | | |Gloria Elliott. Phone: (202) 586-4142 |

|energy technologies; solar buildings, | | | | | | |

|photovoltaics, solar thermal, biomass, alcohol| | | | | | |

|fuels, urban waste, wind, hydropower and | | | | | | |

|hydrogen, and geothermal. Grants will be | | | | | | |

|offered to develop and transfer to the | | | | | | |

|nonfederal sector various renewable energy | | | | | | |

|technologies. | | | | | | |

|10.760 Water and Waste Disposal Systems for |Environmental |$3K - $4M |NA |NA |Dept of Agriculture |Assistant Administrator, Water and |

|Rural Communities: To provide basic human |Technology | | | | |Environmental Programs Rural Utilities |

|amenities, alleviate health hazards and | | | | | |Service, Department of Agriculture, |

|promote the orderly growth of the rural areas | | | | | |Washington, DC 20250. Phone: (202) 690-2670 |

|of the nation by meeting the need for new and | | | | | | |

|improved rural water and waste disposal | | | | | | |

|facilities. | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

|S.761 Native American Telecommunications |Technology |$200K cap; |NA |NA |NA |NA |

|Improvement and Value Enhancement Act': A bill|infrastructure |$1B | | | | |

|to establish a program to make loans to | | | | | | |

|eligible Indian tribes (or tribal entities | | | | | | |

|that have entered into a partnership with a | | | | | | |

|telecommunications carrier) to enable such | | | | | | |

|tribes to provide for the development of | | | | | | |

|telecommunications infrastructure (wireline or| | | | | | |

|wireless) on lands under the jurisdiction of | | | | | | |

|the tribe involved. | | | | | | |

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